Paper 1: Fundamentals of Securities and Futures Regulation

What this paper covers

Paper 1 — Fundamentals of Securities and Futures Regulation — is the common core regulation paper for every SFC Regulated Activity (RA 1–10) applicant. It covers the Securities and Futures Ordinance (SFO), the SFC regulatory framework, the Code of Conduct and the AML/CFT basics.

Key topics

• Overall framework and regulatory objectives of the Securities and Futures Ordinance (SFO)
• Statutory powers of the SFC, the licensing regime and responsibilities of licensees
• Core principles of the Code of Conduct
• Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) framework
• Client asset handling, conflicts of interest and basic internal control requirements
• Continuous professional training, integrity and Fit & Proper requirements

The list above is an indicative summary. The authoritative chapter structure and weighting follow the latest HKSI Institute study material.

Who needs to take this paper?

Paper 1 is required by every licensee or registrant across all SFC Regulated Activities (RA 1–10) — it is the common core regulation paper of the entire LE series.

For the complete RA-to-paper mapping, professional qualification exemptions and detailed requirements per Regulated Activity, refer to the HKSI Institute official LE page.

Study approach

Paper 1 is broad but conceptual. Build a top-down picture of the SFO framework first, then layer in the Code of Conduct and AML rules chapter by chapter. Heavy use of practice questions helps you internalise SFC drafting language and the level of detail tested. It is the basis for every other paper and the one you cannot afford to skip.

Anchor your preparation on the official HKSI Institute study material and reinforce with repeated practice questions to internalise the answer logic for each question type.